(Engineering Daily) Nguyen Anh Duong = VEC(The Vietnam Expressway Corporation) has accumulated debts of $3.72 billion as it funds several mega projects.
VEC’s year-end debt had risen by $329.62 million in 2018.
The debt, mostly composed of long-term loans, accounted for 90% of the corporation’s capital structure by the end of last year, according to its newly-released audited financial statements for 2018.
At the end of last year, VEC’s three biggest creditors were ADB, JBIC, WB.
Because VEC has to repay its loans in U.S. dollar or Japanese yen.
This major expenditure eliminated most of VEC’s profits in 2018 compared to the previous year, despite significantly increased revenue.
The expressway operator made a meagre $128,400 after-tax profits in 2018, compared to $39.84 million in 2017.
VEC recorded $137.35 million in net revenue, an increase of 17% compared to 2017. Most of this revenue came from the operation.